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Wyoming Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Wyoming Casualty course (Wyoming Insurance Producer - Casualty - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. What are the minimum motor vehicle liability limits required by W.S. 31-9-405(b)(ii) in Wyoming?
$30,000 / $60,000 / $25,000 for bodily injury and property damage$25,000 / $50,000 / $10,000 for bodily injury and property damage$20,000 / $40,000 / $15,000 for bodily injury and property damage$25,000 / $50,000 / $20,000 for bodily injury and property damage
2. A liability claim is settled. The injured party receives $50,000 for medical expenses, $20,000 for lost wages, and $30,000 for pain and suffering. The $30,000 for pain and suffering is commonly categorized as:
Consequential damagesSpecial (economic) damagesPunitive damagesGeneral (non-economic) damages
3. A BOP general liability section is most similar to:
An ocean marine cargo form, with the BOP covering goods in transit by water on hull, cargo, and freight termsA monoline CGL, though the BOP limits and aggregates are typically lower than a stand-alone CGLA monoline workers' compensation policy, with the BOP paying statutory benefits to injured employeesA commercial auto policy on the Business Auto form, with the BOP covering owned, hired, and non-owned autos
4. A plumbing crew is replacing pipes at a homeowner's residence. While crawling under the house, an apprentice damages a gas line, causing an explosion that injures the homeowner. The exposure is BEST classified as:
Personal injury, under Coverage BProducts-completed operations, pipes were the 'product' soldOperations liability, work is ongoing and has not been completedPremises liability, the loss occurred on someone's property
5. A Wyoming court finds that an insurer's refusal to pay the full amount of a covered loss was unreasonable. What may it award under W.S. 26-15-124?
The policy limit, regardless of the amount actually claimedTreble the amount of the loss, as a statutory punitive remedyA reasonable attorney's fee and interest at ten percent a yearA reasonable attorney's fee and interest at six percent a year
6. The Law of Large Numbers is fundamental to casualty insurance because it allows insurers to:
Predict aggregate losses for a class of insureds with reasonable accuracy when the pool is large enoughEliminate underwriting entirely and accept every applicant on the same terms, since losses average outAvoid paying any claims at all under the contract, because the pool absorbs every loss that occursCharge unlimited premiums above the filed manual rates, because a large pool justifies any rate level
7. An electrician trips over his own toolbox while installing wiring inside a customer's office building and is injured. He sues the customer for failing to maintain a safe workplace. From the CUSTOMER's CGL perspective, which hazard category responds?
Operations, the customer was conducting business operations and the loss attaches to ongoing operationsPremises liability, the injured party is a third party on the insured's premisesNo coverage, the electrician was a contractor and contractor-on-premises injuries are excluded under the standard CGLProducts-completed operations, the wiring contract is treated as a completed product the customer sold
8. The Business Owners Policy (BOP) is designed primarily for:
Small to mid-size businesses with limited underwriting complexity (e.g., small retail, office, apartment, light manufacturing)Contractors and trucking firms whose main exposures are commercial autos, heavy equipment, and workers compensationLarge manufacturers and national retailers with complex, multistate exposures that require individually rated coverageIndividuals and families seeking combined homeowners and personal auto coverage in a single package policy
9. On a commercial auto quote, the underwriter raises the premium because of the MVR (motor vehicle report) for the business's principal driver. What notice must be given to comply with FCRA?
Adverse-action notice identifying the reporting agency and informing the consumer of the right to a free report and to dispute inaccuracies.No notice is required, because an MVR is a public driving record and not a consumer report, so FCRA rules do not apply to it.A GLBA privacy notice describing the information collected and the driver's right to opt out of sharing with affiliated companies.A copy of the underwriter's rating worksheet showing the surcharge, delivered only if the driver submits a written request for it.
10. A claims-made CGL policy requires BOTH of the following for coverage to apply:
The claim must be first made against the insured during the policy period AND the injury must have occurred during that same policy period.The injury must occur after the retroactive date AND the insured must purchase an extended reporting period before the policy expires.The injury must occur on or after the retroactive date AND the claim must be first made against the insured during the policy period (or extended reporting period).The injury must occur during the policy period AND the insured must report the claim to the insurer within 30 days of first learning of it.
11. The CGL aggregate limit is replenished:
Automatically after every covered claimOn the first of every calendar monthAt the beginning of each new policy periodNever, it is exhausted permanently
12. A binder is:
A temporary written or oral evidence of coverage pending policy issuance, typically valid 30–90 days.A document that guarantees the insurer will issue the policy at the quoted premium, whatever the underwriting.A permanent policy form issued after underwriting is complete that replaces the declarations page.A written application signed by the insured that becomes part of the policy once coverage is issued.
13. How many days' notice of NONRENEWAL does Wyoming Insurance Department rules Chapter 14 require on a private passenger automobile policy?
At least sixty days before the expiration date of the policyAt least twenty days before the expiration date of the policyAt least thirty days before the expiration date of the policyAt least forty-five days before the expiration date of the policy
14. A Wyoming homeowner files a covered hail-loss claim. The insurer completes its investigation but, as a matter of routine practice on this book, neither accepts nor denies coverage. Under W.S. 26-13-124, the insurer's failure to make a timely coverage decision after receipt of a proof of loss may constitute:
An unfair claim settlement practiceCriminal fraudAutomatic referral to the Wyoming Attorney GeneralA waived right to deny coverage forever
15. An auto policyholder's $20,000 vehicle is totaled. The insurer pays $20,000 ACV and then pursues the at-fault driver for that amount. The insurer's right to recover from the at-fault driver is called:
SubrogationWaiverEstoppelAbandonment
16. A 7-year-old commercial auto with a replacement cost of $30,000 and an estimated useful life of 12 years is destroyed in a covered loss. Using the straight-line depreciation approach to ACV, what is the ACV?
$30,000$17,500$20,000$12,500
17. Which Wyoming policy carries a NINETY-day nonrenewal notice requirement under W.S. 26-35-203?
A commercial package policy covering a manufacturing operationA personal automobile policy renewed twice by the same insurerA professional health care malpractice liability policyA homeowners policy that has been in force for five full years
18. A general contractor receives a certificate of insurance from a subcontractor's agent stating that the GC is listed as an additional insured on the sub's CGL. No AI endorsement is actually attached to the sub's policy. A worker is injured on the jobsite and sues both the sub and the GC. Which statement is CORRECT?
The GC is covered only for its defense costs, because a COI creates a duty to defend but never a duty to indemnify the certificate holder.The GC is an additional insured because the COI was relied on in good faith, and the sub's CGL must defend the GC up to its full policy limits.The COI binds the sub's insurer to treat the GC as an additional insured, because the certificate was issued by the insurer's authorized agent.The COI evidences coverage but does not grant it; the GC is not an additional insured, and the issuing agent has serious E&O exposure
19. A BID bond:
Protects the bidder against losses if the project owner cancels the contract after the bidding process has closed.Guarantees that the bidder's price is the lowest submitted and refunds the owner if a lower bid is later found.Guarantees that the contractor will complete the project according to its terms and pay all subcontractors on time.Guarantees the bidder will enter into the contract if awarded and furnish any required performance/payment bonds.
20. Under W.S. 26-11-118(c), what surplus lines premium tax applies and who pays it over?
Four percent of net written premiums, remitted by the admitted insurerTwo percent of gross premiums, remitted by the nonadmitted insurerThree percent of gross premiums less return premiums, by the brokerFive percent of gross premiums, withheld by the insured at closing

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